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Capital Allocators · September 18, 2023 · 48m

David Morehead - CIO of Baylor University

David Morehead manages Baylor's $2.2 billion endowment with a small team, demonstrating that endowment size doesn't determine investment quality — process discipline does.

Canon

Morehead tells Seides his investment committee explicitly separates controllable factors (process, manager diligence, asset allocation) from uncontrollable ones (market returns, interest rates, geopolitics).

Highlights

Small endowments can outperform large ones by being nimble — size is not destiny in institutional investing
Morehead shows that Baylor's $2.2B endowment has outperformed many larger endowments by accessing smaller funds, making quicker decisions, and avoiding the bureaucratic processes that slow larger institutions.